DATE: DECEMBER 13, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, COMMUNITY DEVELOPMENT DIRECTOR
THROUGH: ROD POWELL, PLANNING MANAGER
BY: MARIA CAMBRON, COMMUNITY DEVELOPMENT ANALYST
TITLE: ACCEPTANCE OF ADDITIONAL CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT CONTINUUM OF CARE EMERGENCY SOLUTIONS GRANT CORONAVIRUS PROGRAM FUNDS RECOMMENDED MOTION:
A motion to approve a Resolution authorizing:
the acceptance of $150,000 of additional California Department of Housing and Community Development CoC Program Emergency Solutions Grant Covid-19 Rapid Rehousing funds; and an increase of $150,000 to the ESG-CV HCD fund appropriation and corresponding revenue budget for the California Department of Housing and Community Development CoC Program Emergency Solutions Grant Covid-19 program; and the City Manager or designee, on behalf of and for the City of Salinas and CoC CA-506 Leadership Council, to execute all agreements and documents necessary to receive and allocate additional HCD CoC ESG-CV Program Rapid Rehousing funds to awarded agencies.
EXECUTIVE SUMMARY:
The City currently serves as the Administrative Entity (AE) for the local CA-506 Salinas/Monterey/San Benito Continuum of Care (CoC) Emergency Solution Grant (ESG) program. In this capacity, CDD Housing & Community Development staff have administered the CoC’s annual HCD ESG allocation as well as its one-time ESG-CV funding.
Recently, the State of California Department of Housing and Community Development (HCD) notified the City of an additional $3.8 million dollars in CoC ESG-CV program funds available to qualifying jurisdictions statewide to support Rapid Rehousing (RRH) services and activities. Eligible jurisdictions are those who have expended a minimum of fifty percent (50%) of their allocated ESG-CV funds. Having met this expenditure criteria, the CA-506 CoC is eligible to receive an additional $150,000 of ESG-CV funds.
BACKGROUND:
On July 20, 2020, the City, as the AE for HCD CoC ESG funding, submitted a required HCD application outlining its plan to spend an available ESG-CV allocation of $857,100 within the CoC CA-506’s jurisdiction encompassing all of Monterey and San Benito counties. HCD notified the City on October 27, 2020, of its application approval and authorized the City to move forward with the planned award of funds to various sub-provider homeless services programs throughout the CoC under an initial expenditure deadline of September 30, 2022.
On October 21, 2020, the City summitted a second HCD application for an additional $3,125,000 ESG-CV Round 2 funds and was awarded on February 19, 2021, with the same expenditure deadline. ESG-CV funds may be used in support of program administration, emergency shelter, homeless prevention, rapid rehousing, and homeless management information systems. RRH funds are intended to provide vital housing supports such as rental assistance, landlord incentives, security deposits, and the provision of necessary household items to ensure the successful transition to permanent housing.
On November 3, 2022, following the issuance of an expenditure deadline extension to September 30, 2023, HCD advised the City that it was identified as one of a few jurisdictions to receive an additional $150,000 in CoC ESG-CV funding specific to the provision of rapid rehousing activities and supports.
DISCUSSION:
In response to HCD’s notification, on November 4, 2022, City staff reached out to each of the four (4) currently awarded CoC ESG-CV RRH service providers to gauge their interest in and ability to expend additional RRH funds by the HCD newly stipulated expenditure deadline. Of the four agencies, only two (2) expressed an interest and ability to accept additional funds to continue or expand their current program activities. However, combined initial funding requests from the two agencies exceeded additional funds available. In an effort to support each program, City staff are recommending an equitable distribution of $75,000 to each agency.
The table below, identifies both the funding requested and recommended for each agency.
In accordance with HCD regulations, the CoC CA-506 Leadership Council serves as the final approving body for all HCD CoC ESG related funding. However, the City, as the CoC AE, accepts and administers the funding on behalf of the CoC and facilitates and executes all necessary administrative activities and reporting, including provision of an HCD required Resolution, through its City Council.
DEPARTMENT COORDINATION:
This agenda item is solely administered by the Community Development Department with contributions from both the City Attorney and Finance Department. Additional external coordination with the CoC Leadership Council and Coalition of Homeless Services Providers staff is ongoing.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
HCD CoC ESG-CV funds are instrumental in providing unhoused individuals with vital financial assistance, rental assistance, housing navigations and other permanent housing supports in partnership with homeless service agencies. This additional funding will support activities and projects that support City Council 2022-2025 Goals and Strategies including Housing/Affordable Housing and Effective and Culturally Responsible Government.
FISCAL AND SUSTAINABILITY IMPACT:
Acceptance of this additional $150,000 in CoC ESG-CV RRH funds will require a corresponding increase in the ESG-CV HCD fund appropriation. No matching City funds are required.
ATTACHMENTS:
Resolution – City Format
Resolution – State HCD Format
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